Apple, Inc. (AAPL) won't announce its fiscal Q2 2013 (calendar Q1 2013) quarterly earnings until April 23, but South Korea's Samsung Electronics Comp., Ltd. (KSC:005930), has already started things off with a bang, issuing impressive earnings guidance. The record profits come before the company even started shipping its flagship smartphone, the Galaxy S IV, which will go on sale later this month.

I. Samsung Approaches Apple in Profitability

With Apple predicted to draw $10.1B USD, Samsung showed just how close it is getting to the American firm in profitability. Samsung's earnings guidance suggests an 8.7T won ($7.7B USD) profit, up over 50 percent from the 5.7T won ($5.0B USD) profit it posted in the first calendar quarter of 2012. Samsung predicts sales of around 52T won ($45.93B USD).

That's a bit of a surprise -- a survey of 10 analysts by UK-based Financial Times, a Pearson PLC unit (LON:PSON), found an expectation of 8.0T won ($7.0B USD) in profit. A newer compilation by Bloomberg of 39 analysts' predictions showed an average expectation for 8.4T won ($7.4B USD) in profit.

Samsung's mobile sales are expected to rise around 40 percent on a year-to-year basis. Mobile is expected to post a profit of around 6.25T won ($5.5B USD), remaining Samsung's most lucrative division (Samsung's large component electronics, display, and household electronics units typically post leaner margins).

When you take just the smartphone sales of Samsung's mobile unit, the company appears to be nearly as profitable as its archrival Apple, a feat analysts long thought would be impossible for an Android phonemaker.

Samsung does not announce its unit sales of smartphones, but IBK Securities analyst Lee Seung Woo predicts that the record sales will come on the back of 68.5m smartphones sold globally.

Apple is expected, according to the Financial Times analyst survey, to have sold around 37m iPhones in the first three months of 2013, indicating a roughly 2-to-1 lead in unit sales for Samsung.

The Galaxy S IV lands later this month. [Image Source: Samsung]

The earnings guidance may further trouble Apple investors who were recently disturbed by a research note from Citigroup Inc. (C) analyst Glen Yeung who suggested Apple may miss its own earnings guidance. Mr. Young is predicting Apple may make as little as $40.5B USD in revenue (which in turn would indicate a "weaker" profit in the $9B USD ballpark).

He predicts Apple will only move 34 million smartphones for the quarter (almost precisely half Samsung's shipments). In his note he wrote, "In conducting our regular field work with the hardware supply chain, we again find evidence of reduced demand to Apple's suppliers for iPhone 5 related components. While production does not directly translate to sales (for example, we estimate Apple finished 1Q13 (Dec) with [around] 10M iPhone units in inventory), we suspect this is an indication of softer demand for iPhone 5 and iPhone 4S."

Samsung has stated that it hopes to climb to 390m smartphone sales in 2013.

III. Packed Lineup of High-End Hardware Ahead

What's more, Samsung appears to be firing on all cylinders without even unleashing its strongest weapon -- the Galaxy S IV. Excitement for the GSIV -- which packs a bigger screen (5-inches; 1080p), better camera (13 MP) and hands-free gestures -- is running wild. In his note Lee Seung Woo predicts Samsung to sell 82m smartphones in Q2 2013.

The Galaxy S IV is expected to be a top seller this summer.

Nomura Holdings, Inc. (TYO:8604) analyst Chung Chang Won told Bloomberg that the GSIV is expected to be a fast seller out the gate, commenting, "Second-quarter profit [April-June] looks even better than the first, as the Galaxy S4 will have a great impact. Samsung’s shipments of its flagship smartphone will outpace that of the iPhone sometime in the second or third quarter."

There are more boosts waiting on the horizon as well. Samsung is expected to refresh its popular Galaxy Note tablet mid-year. The company is also rumored to be producing a superphone with an Intel Corp. (INTC) powered processor, which will run Intel and Samsung's co-developed Tizen mobile Linux kernel/UI. And there are rumors of a 6.3-inch Android "Galaxy Mega" smartphone on the horizon. Last, but not least, Samsung is rumored to be slating a GSIV-like smartphone for release with Microsoft Corp.'s (MSFT) upcoming Windows Phone Blue platform this fall.

In short, Samsung has a packed lineup on the high end while Apple is not expected to launch its iPhone 5S (or iPhone 6, possibly) counteroffensive until June 2013 at the earliest [source].

IV. U.S. Sales Still Need Improvement, But Samsung Excels in China

If there's one weak spot in Samsung's stellar performance, it's U.S. sales -- which happen to be the strongest spot for Apple. In September-November Apple grew its share of U.S. subscribers to 39.8 percent, while Samsung only reached 21.3 percent. While that balance will likely shift with the GSIV launch, it remains to be seen if Samsung will be able to beat Apple in its home court.

However, Samsung stands head and shoulders above Apple in performance in developing markets. While the iPhone is seen as a status symbol among China's elite, Apple is still reeling from a PR disaster regarding poor warranty support in China, which led the nation's state-run media publications to skewer the American firm with scathing articles.

Samsung is performing well in China, even as Apple reels from negative publicity.
[Image Source: Venture Beat]

Glen Yeung -- the same Citi analyst who predicts an Apple miss for this last quarter -- says that the Chinese boondoggle could cost Apple around $13B USD in sales, owing to ill-will in the nation's largest mobile market.

Samsung meanwhile continues to ascend in Chinese sales and enjoys a warm relationship with the Chinese media. Meritz Securities analyst notes, "In addition to the Galaxy S3, mini models sold well in emerging markets, including China, Brazil and India. Samsung’s continued ascent in the smartphone industry seems to be unparalleled."

When it benefits Apple you seem to think its important, but when its a competitor you dont... Wait, nevermind. Look who I am talking to. Bias incarnate.

It is a nice chart of Apple sales in one region, the quarter of a yearly product refresh. Way to slice and dice 'em. If you are looking at marketshare, let me help you... Its still 5 to 1 in favor of Android. Now, look at all the great 1080p phones that are coming out this quarter while Apple still has the tiny little low res, non HD, feature weak iPhone5.

No it doesn't. What matters for businesses are sales, profits and business trajectory. What matters for platforms is the strength of it's associated value stack.

The reason these stats on the US market are worth quoting is because it so neatly and amusingly punctures the absurd fantasies of the iPhobics and more rabid Fandroids.

We all know the narrative:

'Apple has peaked!'

'Apple are falling behind!'

'Android is winning!'

'Android cheap phones will destroy Apple's business model!'

'It's Mac versus Windows all over again!'

In reality in the world's most mature smart phone market, where up market Android phones have been available since the platform's launch, the iPhone is continuing to grow faster than Android. How did that happen? I anxiously await the explanation.

quote: It is a nice chart of Apple sales in one region, the quarter of a yearly product refresh.

quote: If you are looking at marketshare, let me help you... Its still 5 to 1 in favor of Android.

Market share does not matter. iOS is still a much stronger, more valuable and more used platform than Android, the iOS device business is a much more successful business than the Android device business. Both platforms will survive and flourish, iOS is flourishing a lot more than Android.

quote: Now, look at all the great 1080p phones that are coming out this quarter while Apple still has the tiny little low res, non HD, feature weak iPhone5.

Dude how many times do I have to tell you, I am not interested in what's in your pocket. If I was interested in people's individual shopping preferences I would watch the Shopping Channel. I am interested in the tech industry not what you bought at Walmarts. I am sure that you are happy with what you bought, congratulations, why do you need the affirmation of other people to approve your shopping choices? Why are you so anxious about choosing Android when nobody else cares that you did?

"No it doesn't. What matters for businesses are sales, profits and business trajectory. "

True, and if I were to somehow magically "own" a business that consisted of current top mobile offerings (Meaning, If I could own Android, IOS, WP, or BB) you bet your butt Apple would be my choice simply for the current profit situation...

But let me remind you that cant happen and this isn't a business site, nor a financial investment site. This is a tech site. On the tech side of things, IOS is weak and old and past its prime. Not that it cant be updated, and catch up, but so far it isn't. Rumors of IOS7 's major UI change are interesting, but just rumors. Today, Android has left it in the past. The HUGE list of missing features on IOS is soemthing that should make any visitor to a tech site like this cringe.

A bad case of "Eye scrolling' is what I got from reading your silly list.

You just don't get it do you? You don't have to defend your choice of phone to me or anybody, you don't have to convince me that this or that Android phone is better at this or that, what would be the point? If you need to convince anyone it's the ten millions plus people who are choosing buy the iPhone every week. Good luck with that :)

I repeat: I don't care what opinions you have about the pro and cons of any particular phone, tablet or any other consumer item. I don't want to discuss your shopping preferences. Why on earth would I? I am sure your phone is very nice and that you bought it for perfectly good reasons and you are very happy with it. Long may you enjoy it. Does that make you feel better?

You are a real piece of work aren't you? You come into an article about Samsung, to post your usual pro Apple rhetoric as you do in all articles about all companies that compete with Apple. I post against your one-sided nonsense of skewed partial data... You as always go back to the financial end of it, I again remind you this isn't a financial site its a tech site and you act as if all I am doing here is defending my own purchase? Here is a hint for you. I haven't purchased a phone in a long time. Mine is 100% free, any phone I want, once a year or so through my work. Unlike you, I am not here to champion a company. I post against your drivel to insure no one comes in and actually reads your nonsense and makes a bad choice. That is all. I am the Batman to your joker (I post on behalf of tech, you post on behalf of an asshole of a company) That and the old "Someone on the internet is wrong" thing that you posted a while back. That is why I am here, and that is why I dont let you get away with your spin. You wanna call me out? call me out for what I am doing as I do to you.

quote: You are a real piece of work aren't you? You come into an article about Samsung, to post your usual pro Apple rhetoric as you do in all articles about all companies that compete with Apple. I post against your one-sided nonsense of skewed partial data... You as always go back to the financial end of it, I again remind you this isn't a financial site its a tech site and you act as if all I am doing here is defending my own purchase? Here is a hint for you. I haven't purchased a phone in a long time. Mine is 100% free, any phone I want, once a year or so through my work. Unlike you, I am not here to champion a company. I post against your drivel to insure no one comes in and actually reads your nonsense and makes a bad choice. That is all. I am the Batman to your joker (I post on behalf of tech, you post on behalf of an asshole of a company) That and the old "Someone on the internet is wrong" thing that you posted a while back. That is why I am here, and that is why I dont let you get away with your spin. You wanna call me out? call me out for what I am doing as I do to you.

Retrosppoty. Stop being a Samsung whore. Do you only date women (or men?) with Android devices? Or more accurately Samsung devices? Get a grip. Also, Tony's links are pretty solid so get over it. I'm assuming you only use Samsung microwaves too.

At least when Tony enters a discussion, he comes up with local, evidenced, factual statements.

I've seen Retrospooty reel off a list I can only assume he maintains on his PC (absolutely tragic) which simply is a list of opinions on the differences between iPhones and some 'magical' Android phone which he seems to believe exists which combines all of the features of any Android phone collectively. Many are flat out wrong, many are purely opinion (which millions of people disagree with), many are irrelevant / gimmicks, and of course he forgets to do the corresponding iOS list.

I prefer Android devices and am not a fan of Apple products. I have a lot of reasons for that dating all the way back to the Apple Lisa (loved the Apple I & ][, though as long as it had an secondary Intel/Zilog processor for running CP/M & UCSD Pascal).

I know where apple came from and the minute they started closing their doors to open systems, I closed my doors to them. I really hate proprietary systems that limits my right to customize it any way I please.

I am far from alone in that way. If you don't believe me, try pounding on your Apple drum here:

"Retrosppoty. Stop being a Samsung whore. Do you only date women (or men?) with Android devices? Or more accurately Samsung devices? Get a grip. Also, Tony's links are pretty solid so get over it. I'm assuming you only use Samsung microwaves too."

You couldnt be more wrong. Tony is a well known dailytech troll going back years and years. He is entertaining though. Retrospooty should really stop feeding him and just lt it go.

The financial side is that analysts are suspecting Apple will miss their earnings guidance while Samsung continues to close the gap with Apple's profitability without even the release of a new Galaxy yet.

Please, stop listening to Tony about financials. He farts out weighted graphics and misinformation, analyses data the wrong way (he ignores context), and relies on short term movements to demonstrate a long term trend (which is simply stupid). He will literally quote, misquote and manipulate anything to fit his worldview of Apple being a dominating long term success (instead of the short term/high growth, nearing maturity, success that it actually is).

If you want financials, Google's share price has increased steadily over the years, Samsung has increased and is currently stable, while Apple... Well, Apple has fallen by a massive %. One of these is not like the others. Just don't expect Tony to tell you which one...

"lease, stop listening to Tony about financials. He farts out weighted graphics and misinformation, analyses data the wrong way (he ignores context), and relies on short term movements to demonstrate a long term trend (which is simply stupid). He will literally quote, misquote and manipulate anything to fit his worldview of Apple being a dominating long term success"

Exactly... Most of us here know that. Like I say, he tends to tell "The Truth" and "Nothing But The Truth" but ALWAYS leaves out "The Whole Truth" ... Meaning, he paints a false picture. He's a smart bloke, and its not by accident. Tony's posts are well thought out, and cleverly worded to bend facts and obscure information, done with the skill of a seasoned politician. He isn't here to see what is going on in the tech world, or to learn what products may be coming. He is here on an agenda to try and change minds... For whatever reason. I will leave that reason to others. Whether a paid shill, or an obsessed fanboy is irrelevant, neither is acceptable.

Look at this emphasis on inflated bulletpoint features while ignoring fundamental things like the quality of screens, battery life/performance balance, and better third party support.

Lots of glitz and flash with surprisingly little substance.

If we cut out the crap (space consuming tech like HDMI ports that is better replaced by Miracast or Airplay), lies (the iPhone 5 bezel is half the thickness of the GS3, flash drive functionality not being in iOS when its available through apps, better mapping software even though iOS has better ones, Google Maps included), or are the byproduct of your technical ignorance ( video scalers, how do they work?), then there are a few things worth looking at getting from Android over into iOS.

Multiuser support isn't needed for phones but it is certainly needed for tablets. iPads need it and I hope iOS7 gets it.

Otherwise its all preference. Flexibility in hardware is a great thing Android has, but of course it comes at the cost of better software. That's a clear tradeoff. Same with bigger screens, SD cards, and removable batteries: useful to some but at the cost of requiring bigger chassis. Actually, it isn't necessary; HTC's newest devices are massive and they prevent users from getting inside them even more than people getting into their iPhones. The One is sealed up tight.

The rest of the list is glitz and flash that ignores practicality and polish. Superficial people clearly enjoy superfluous UI flash at the expense of significantly better applications and superior developer support, but some people like making Linux flashy as well.

I'll take a massively supported but boring 15-year-old Windows 7 UI over tweakable Linux that is poorly supported but can do this, but that's just me: http://youtu.be/4QokOwvPxrE?t=1m35s

quote: - Better OS

How can a superior OS have fewer killers apps and so many bad ports? What good is a flashy UI when the stuff you're navigating to is so limited?

Again, enjoy Android, HTC in particular has great hardware! 4.2 has come a long way to catching to where iOS and WP were in terms of polish! Thinking that it doesn't come with inherent deficiencies in terms of software, support (both 3rd party and 1st party), and polish, is pure delusion and fanboyism though.

Pros and cons, every platform has them. No list, no matter how inflated and sad, can change that.

"How can a superior OS have fewer killers apps and so many bad ports? What good is a flashy UI when the stuff you're navigating to is so limited?"

I totally agree with that statement... The only thing "wrong" with it is that its not an accurate description of Android in 2013. It would certainly fit Android in 2010/2011. Like I keep saying, you need to update your spin.

As for the rest... Look, I get that you like Apple. You dont need alot from your phone, other than apps. It works for you and that is good. I require more from my phone, I need it to be more dynamic and to do more. That huge list isnt all petty stuff, regardless if YOU dont use them... The vast majority of it is highly useful, with a few being opinion and niche. Like I said, if you dont need it and like a small low res phone with great battery life and apps, and dont care about a modern UI or the giant list of missing features the iPhone is a great phone. Clearly millions and millions like it just fine. You dont need to sing its praises or defend it here, its falling on deaf ears (people that know better).

Keep telling yourself its close, it isn't. It's like heaing a Linux fanatic say that GIMP is better than Photoshop.

At best you're finally seeing ports of staple iOS apps from 2008 like Instapaper getting on Android, what, four years later? Big news is something as simple as an old iOS coupon clipping app finally getting on Android, the same weekend Blizzard announces an entirely new game for Mac/PC/iOS and 2K Games announces a straight PC port of X-Com 2012, both on iOS and with no plans for Android. I know you think games are irrelevant so there's also the pro industry. You talk about inferior maps, hell, the aviation industry uses iOS devices for their flight docs now: http://www.foreflight.com/ Then there's medical, financial, media, best-in-class utilities for SSH/FTP, etc.

Yes, I know you aren't a pilot or a doctor or a media pro, but this is about the depth and quality of the app ecosystems. Whatever you need, the best versions are on iOS. Android having as many apps doesn't mean much when high end developers either aren't developing for it or are making half-baked ports. So much of that Android number is inflated by shovelware, cloneware, and malware. Even Microsoft has most of their mobile software on iOS without Android versions. Heck, Google has better versions of GMail and Maps on it.

Unless its something ultra-mainstream like Netflix or Angry Birds it just isn't the same. Maybe that's all you need and you can deal with second-class apps for the rest, that's understandable.

It isn't about "liking Apple". I know that's hard to understand since you come at this from an emotional point of view where Android is your "home team". For me its all about the best product for what I want. I own products in multiple ecosystems (Microsoft, Apple, Amazon, Sony, Nintendo, etc). My favorite tablet is a Kindle e-reader for chrissakes.

I want more apps on my boring desktop, so I use Windows. Same with iOS, I'll take a "boring" but solid OS any day so long as it has better applications. What use is a "flashy" Android UI when there's so less to actually DO with the OS? Its like the flashy Linux CompizUI mods. All glitz but who cares?

quote: You dont need alot from your phone, other than apps. It works for you and that is good. I require more from my phone, I need it to be more dynamic and to do more.

Apps define usage, apps are everything. Apps are what separate smartphones from featurephones and dumbphones. Is a dumbphone all you need?

Smartphones (and to an even greater degree tablets) are app machines, without them they lose functionality. Android having inferior apps by definition means inferior functionality as defined by third parties.

If I didn't care about third party applications then I'd just dump Windows for a Chromebook.

You clearly don't use your phone very much. If you're fine with vanilla apps and ultra-mainstream stuff then I can totally see why you're can't see the point. If you're not missing anything then why would you even know to care?

If usage is defined by SD cards then that's totally fine, I totally get it, but don't pretend the app or polish situations are the same. I completely understand that I give up 5"-6" screens for greater software utility and OS polish. You either don't want to accept or don't understand the degree of utility you're giving up for bigger screens and SD card slots.

An objective person, any reviewer on Anandtech for instance, understands the advantages of Android hardware (multiple configurations, etc) while also understanding its weaknesses (applications, polish, support).

My only issue is how much in denial you are. You pretend there are no weaknesses at all, which is insane. EVERY platform has deficiencies, its all about choosing the right balance. You're like the Baghdad Bob of Android. :)

I'm not trying to change your mind, just own what you like and accept where it falls short. I have no problem doing that myself.

foreflight is not the type of map software he's talking about and you know it. He's referring to Apples map sotware used to replace googlemaps. As for foreflight, there are equivalent programs used by the industry available for Android as well.

Like I said... 2010 called, it wants is arguments back. In 2013, everything you post about apps is not true. Again, you act like IOS is a 10 of 10 and Android is 2 of 10 on a 10 scale. Its more like IOS is a 9 and Android an 8. It's not like there are no apps and no support. You want to say apps are bettter on IOS, I agree, its a bit better, but you argue like Android has nothing at all going on and that is just a pure lie. There are tons of great apps, games and there isnt a single thing you can do on IOS that you cant on Android. the opposite is not true period, end of story.

Google is better? You are a moron. Even google fears Samsung. It's not Google v Apple idiot. It's Samsung vs Apple and Samsumg makes plastic junk. Enjoy it. I wonder how many page hits on DT are from iPads. :-).

As long as Apple continues to be a closed Software+Hardware vendor it will be Apple vs everyone else.

Just happens that Samsung is the highest selling Android smartphone maker. I saw it mentioned in this thread that 3 out of 4 carriers carry iPhones. Gee, really? LOL! Bit of misinformation there since I have yet to see a carrier that doesn't carry iPhones. That guesstimate didn't come from me.

I will put it to you that every single carrier out there carries Android phones of some sort and that 99% of those will carry at least one Samsung phone model.

Samsung, for being not being a hardware + software, "my way or the highway" vendor does pretty damn good in comparison to Apple. Now put all those Android-based hardware vendors together and you will find 3 Android phones selling for each iPhone.

I don't care that my Sammy GS3 has a plastic back cover. I can pop that off and swap out the battery (and replace it with one having 3 times the capacity) any time I want. I like having a 32GB MicroSD card to store all my shit on. And I like that when the Sammy SG4s come out I can pop that card out and have all my shit instantly available on that new GS4.

Isn't having a phone with an open architecture from the software on up grand? I wouldn't trade that for an Apple sealed up in an aluminum box for the world. No thanks!